Stock code : 9824

SENSHU ELECTRIC CO.,LTD.

Outline
1 . Group Overview
2 . October 2023 Summary of 2nd Quarter financial results
3 . Medium term management plan

4 . Reference data

SENSHU ELECTRIC CO.,LTD.

2

1 . Group Overview

SENSHU ELECTRIC CO.,LTD.

3

Group Overview
Established

November 18, 1949

SharesTokyo Stock Exchange Prime

Capital2,575,200,000yen [US$19Mil.]Type of industry

Wholesale distributor(Industry leader of electric wires general trading company)

No. of employees

819（Average age:39.8）

No. of subsidiaries ７ in Japan and ７ in overseas（China/Taiwan/Thailand/Philippines/Vietnam/USA）
No. of offices

18 in Japan

JapanAsia

SENSHU ELECTRIC CO.,LTD.

USA4Sales Channels of Electric Wires
Electric power

Communications(NTT etc.)(Each electric power
supply companies)

Electric wire
manufacturers

Electric machinery(General manufacturers)

Other domestic
demand(Steel/ship building etc.)

Direct demands
Automobiles(Related companies)
Electricalmaterials

Electrical facilities
materials sales
companies

Construction/
Electrical sales

Electricfacilities

Direct demands

Electricalconstruction
companies

SENSHU ELECTRIC CO.,LTD.

Sales channels of electric wire
Manufacturers
Our sales channels(Electrical materials)
Our sales channels(Direct demands)
Our sales channels(Electrical facilities)
Sales channels of our customers
5Major Customers (image)〈More than 3,500 Customers〉
Electricalmaterials(For Electrical facilities
materials salescompanies)

Electricfacilities(Electrical constructioncompanies)

Directdemands

There are approximately 1,100
major electric material storesthat are members of the union

ElectricalconstructionMore than 60,000 companies nationwide,
including small and medium-sized companies
Mainly large companies

Building/Mansions
Solar Power Generation
Offshore wind power generation facilities, etc.

Manufacturers of machines and robots that produce machine tools, automobiles,
semiconductors, etc.

(End-users)
Machine tools/industrial machines

Automobile facilities

SENSHU ELECTRIC CO.,LTD.

Semiconductor/liquid crystal facilities

6

Customers Composition（Non-consolidated）
October 2022
Power Cables
Covered Cables

FA Cables
Power Cables
Covered Cables
Non-Cables
Transition（％）

FA Cables

SENSHU ELECTRIC CO.,LTD.

7

Three Business Models
1

JUST IN TIME system

2

Original products

3

Cable assemblies(Electric wire terminal processing）

Electric wires of about 200,000 types

7 processing plants located& difficult to stock in terms of spacenationwide meet the needs for small-and theft due to their heavy weight.

lot, quick-delivery processing of wires

We have a warehouse floor space ofwith attached terminals, control

approximately 60,000 ㎡ in Japan

panels, and other products. We have

(Sapporo to Okinawa) with overalso established a system of

50,000 kinds of products, havecollaboration among our group

established a JUST IN TIME system.

FA cables (Factory Automation (FA)companies.

cables used for robots, etc.) with awire manufacturer and sold them as
original products. We accurately
grasp a wide variety of needs and playa role as a technical trading company.

SENSHU ELECTRIC CO.,LTD.

8

2.

October 2023 Summary of 2nd Quarter financial results

SENSHU ELECTRIC CO.,LTD.

9

Consolidated Financial Highlights
2Q achievements
・Both sales and profits hit record highs in the 2 nd quarter
・Maintaining strong demand for semiconductor manufacturing equipment andrecovering demand for automobiles facilities and machine tools
・Sales for construction and electronic sales increased due to the rise in copper prices
・Average copper prices increased 1.0% year on year to 1,223,000 yen/tShareholder Returns
・Fiscal Year Ended October 2023
Initial forecast: 80 yen per year→Dividend increased to 100 yen(Interim dividend 50 yen/share Year-end dividend forecast of 50 yen/share)
SENSHU ELECTRIC CO.,LTD.

10

Consolidated income statements overview（Unit : million yen、％）

2022/10_2Q

Composition
ratio

2023/10_2Q

Composition
ratio

Increase or decrease

YoY

55,154100.0

61,851

100.0

6,697

12.1

Gross profit

8,191

14.9

9,404

15.21,212

14.8

Selling, general andadministrative expenses

4,655

8.5

5,099

8.2

443

9.5

Operating profit

3,536

6.4

4,304

7.0

768

21.7

Recurring profit

3,713

6.7

4,482

7.2

769

20.7

Profit attributable to owners

2,491

4.5

2,994

4.8

502

20.2

Net salesof parent
Average copper price(Thousand yen/t)

1,211

1,223

SENSHU ELECTRIC CO.,LTD.

12

1.0

11

Sales by Product (Non-consolidated)（Unit : million yen）

2022/10_2Q

Composition
ratio

2023/10_2Q

Composition
ratio

Increase or decrease●FA Cables

17,632

33.7%

19,641

33.6%

2,008

11.4%

●Power Cables

18,74635.9%

20,886

35.8%

2,141

11.4%

●Covered Cables

5,138

9.8%

5,641

9.7%

502

9.8%

●Other Cables

2,714

5.2%

3,138

5.4%

424

15.6%

●Non-Cables

8,048

15.4%

9,063

15.5%

1,016

12.6%

Total

52,280 100.0%

58,371 100.0%

6,090

11.7%

12

1.0%

Average copper price(Thousand yen/t)

1,211

1,223

SENSHU ELECTRIC CO.,LTD.

12

Sales Analysis(By category of business・By product)
Sales,By
category ofbusiness

Sales,Byproduct

SENSHU ELECTRIC CO.,LTD.

13

Consolidated Balance Sheet overview（Unit: million yen）

2022/102023/10_2Q

Increase ordecrease

Total current assets

67,91070,1282,218

Total non-current assets

27,471

28,753

1,281

Total assets

95,381

98,881

3,500

Total current liabilities

45,922

47,343

1,421

3,059

3,178

118

Total liabilities

48,98250,521

1,539

Total shareholders' equity

45,066

46,845

1,779

Total net assets

46,39948,3591,960

95,381

98,881

3,500

Total non-current liabilities

Total liabilities and netassets

SENSHU ELECTRIC CO.,LTD.

14

Forecast of consolidated financial results（2023/06/05 announcement)（Unit : million yen,％）2022/10

Net sales

Composition
ratio

2023/10
Initial forecast

Composition
ratio

113,633 100.0 118,200 100.02023/10
YoY

Revised forecast

4.0

Composition
ratio

123,000 100.0

YoY

Increase or decrease

8.2 4,800

4.1

Operating profit

7,464

6.6

7,800

6.6

4.5

8,100

6.6

8.5

300

3.8

Recurring profit

7,894

6.9

8,100

6.9

2.6

8,500

6.9

7.7

400

4.9

5,314

4.7

5,500

4.7

3.5

5,700

4.6

7.3200

3.6

0.4

1,200

Profit attributable toowners of parent
Average copper price(Thousand yen/t)

1,195

1,200

SENSHU ELECTRIC CO.,LTD.

0.4
15

Forecast of Sales by Product（Non－consolidated）(2023/06/05 announcement)（Unit : million yen）

2022/10

Composition
ratio

2023/10
Initial forecast

Composition

Composition

ratio

ratio

2023/10
Revised forecast

Composition Composition
ratio

ratio

Increase or decrease●FA Cables

36,61834.2%

37,300

33.6%

1.9%

39,700

34.2%

8.4%

2,400

6.4%

●Power Cables

37,86535.3%

38,500

35.8%

1.7%

40,900

35.3%

8.0%

2,400

6.2%

●Covered Cables

10,371

9.7%

10,5009.7%

1.2%

11,100

9.6%

7.0%

600

5.7%

●Other Cables

5,436

5.1%

5,500

5.4%

1.2%

5,800

5.0%

6.7%

300

5.5%

●Non-Cables

16,92915.7%

17,200

15.6%

1.6%

18,500

15.9%

9.3%

1,300

7.6%

Total

107,221 100.0%

109,000 100.0%

1.7%

116,000 100.0%

8.2%

7,000

6.4%

Average copper price(Thousand yen/t)

1,195

1,200

0.4%

SENSHU ELECTRIC CO.,LTD.

1,200

0.4%

16

Shareholder Return Policies

123

Dividend（Dividend increase from 80 yen to 100 yen）
Setting stable dividend payment as our basic policy, we are paying dividends
considering and examining business results and retained earnings, etc.
comprehensively. Dividend increase by 30 yen forecast for the FY10/2023 (interim
dividend:50 yen, year-end dividend: 50 yen)

Treasury stock acquisition
We acquired treasury stock in order to improveshareholder returns, improve capital efficiency,
and implement flexible capital policies in responseto changes in the business environment.

Stockholder benefit program(Once a year (at year end), 1 unit (100 shares) or more)・ Total number of acquire shares
182,700 shares・Total acquisition amount
599,899,000 yen（Acquisition period2022/12/9 to 2023/4/10）

Less then 1 year : Our original QUO card (1,000 yen)
One year or more : Our original QUO card (2,000 yen)

※ Stock split (from 1 to 2 shares)
2-for-1 stock split of common stock with a record date of October 31, 2022

SENSHU ELECTRIC CO.,LTD.

17

3. Medium term management plan

SENSHU ELECTRIC CO.,LTD.

18

Medium-Term Management Plan
(2022/12/08announcement)
Final Year October 2025
Net sales 125 billion yen
ROE More then 10.0％

Recurring profit

SENSHU ELECTRIC CO.,LTD.

8.5 billion yen（Unit：million）

19

Medium-Term Management Plan ：SS2025
Sales of 125 billion yen, Recurring profit of 8.5 billion yen,
Achievement a return on equity (ROE) of more then 10%

New construction
Review of production lines

Increase sales in the direct demand sector by developing original products
and strengthening the processing sector

Improvement of the Just in Time system
Strengthening of sales in Tokyo and surrounding Kanto areas,and expansion of share for the other area
Sales products other than electric wires including own brand ones anddevelopment of new fields
Strengthening of global deployment(Improvement profitability of the Group)

EV/Renewableenergy

ESG/SDGs

Semiconductor/Automated

AI・IoT

Inbound Expo
インバウンド、万博・IR

IR Construction
建設需要demand

銅価高騰

Sustainability Management
Promotion of the Senshu Transformation Project
SENSHU ELECTRIC CO.,LTD.

20

Medium-Term Management Plan ：Capital Expenditures andDepreciation● Hokuriku BranchOpen in May 2023
Ishikawa-ken Kanazawa-shi Kimachi
Higashi 1176-3〇 Solar power landWill be acquired in 2023

● Nagoya FA Center
SENSHU ELECTRIC CO.,LTD.

Will open in 2024

21

Medium-Term Management Plan ：New Fields／Abil heater
Subterranean heated vinyl lines for agricultural use.
Abil heater

Contributes to CO2 emission reduction by directly heating soil inplastic greenhouses, etc., and increases harvest turnover (cycle)
by accelerating the speed of growth.

Contribute to the SDGs
Decarbonization and energy savings compared to boilers that use fuel.

Senshu Electric Nagakute House
Growing tomatoes and strawberries in Nagakute City, Aichi Prefecture,

Annual sales of 1 billion yen
in agribusiness by 2027

using aviru heaters.

OtherExhibit at agricultural trade shows.
Developing a hot air heater.

SENSHU ELECTRIC CO.,LTD.

22

Medium-Term Management Plan：Sustainability ManagementMateriality

Environmental conservation
E activities

Respect and consideration forhuman rights
Creating a rewarding work
S environment
Stable supply of goods andservices

SDGs

Reduction of CO2 emissions
Response to climate change
Compliance with environmental laws
and regulations

Strengthening information security
Strengthening quality control system
Improving engagement with employees andbusiness partners
Promotion of health management andenhancement of health and safety
Promoting diverStrengthening information security
Strengthening quality control system
Improving engagement with employees andbusiness partners
Promotion of health management andenhancement of health and safety
Promoting diversity

TOPICS●Dec.2022
Disclosure under TCFD(Governance ,metrics and goals●Apr. 2023
Published Environmental Report●Sep. 2023
Invest in Green Bonds(Osaka city,etc)●Certification of ”Excellent HealthManagement Corporation 20

Long-Term Goal

Carbon neutrality by 2050
Medium-Term Goal

50% reduction comparedto fiscal 2013 by 2030
50％CO2emissions

2013

CO2emis
sions

02030

2050

Investing in Green Bonds

Establishment of a governanceG systemCompliance with laws and regulations
Thorough compliance
BCP (business continuity plan)
Maintenance of the system●Jan. 27, 2023
Corporate Governance Report

SENSHU ELECTRIC CO.,LTD.

Invest in Green bonds issued by Osaka City,etc (receivables issued to raise funds
limited to businesses that haveenvironment improvement effects,etc.
[Details are posted on the homepage]https://www.senden.co.jp/news/23

4. Reference data

SENSHU ELECTRIC CO.,LTD.

24

Consolidated income statements overview（Comparison with previous FY）（Unit : million yen、％）

2022/10_2Q

2023/10_2Q

Increase or decrease

Net sales

55,154100.0

61,851

100.0

6,697

12.1

Cost of sales

46,96285.1

52,447

84.8

5,485

11.7

Gross profit

8,191

14.9

9,404

15.2

1,212

14.8

4,655

8.5

5,099

8.2

443

9.5

3,536

6.4

4,304

7.0

768

21.7

Non-operating income

226

0.4

247

0.4

20

Non-operating expenses

490.1

690.1

19

3,713

6.7

4,482

7.2

769

Extraordinary income

00.0

00.00

Extraordinary losses

00.000.00Profit before income taxes

3,713

6.7

4,482

7.2769

Income taxes - current

1,156

2.1

1,450

2.3

294

Income taxes - deferred

35

0.1

80.0

△ 27

2,521

4.6

3,024

4.9

502

29

0.1

29

0.0

0

2,491

4.5

2,994

4.8

502

20.2

121.0

Selling, general andadministrative expenses

Operating profit

Recurring profit

ProfitProfit attributable
to non-controlling interests
Profit attributable to owners ofparent
Average copper price(Thousand yen/t)

1,211

1,223

SENSHU ELECTRIC CO.,LTD.

20.7

20.7

19.925

Consolidated Balance Sheet overview（Unit: million yen）

2022/102023/10_2Q

Increase or

2022/10decrease

2023/10_2Q

Increase or
decrease

Cash and deposits

27,16526,966△ 198 Notes and accounts payable - trade

Notes and accounts receivable - trade22,572

24,158

Electronically recorded

10,831

10,336

23

24

204

△ 16

6,575

7,841

1,266 Income taxes payable

1,840

1,504

△ 335

250

263

12 Provision for bonuses

767

752

△ 14

1,333

1,406

74

45,922

47,343

1,421

107

99

△760

58

△12,249

2,319

69641

699

57

monetary claims - operatingSecurities
MerchandiseWork in process

41,21442,9281,714

1,586 Short - term borrowings

631

631

0

△ 494 Current portion of bonds payable

114

114

－1 Current portion of long-term borrowings

Raw materials and supplies

238

266

27 Other Current liabilities

Other current assets

253

270

17

Total current assets

67,91070,128Property, plant and equipment

17,77918,685

339

330

9,352

9,738

Intangible assets
Investments and other assets

2,218 Total current liabilities
906 Bonds payable△ 9 Long-term borrowings
385 Retirement benefit liabilityOther non-current liabilities

Total non-current assets

27,471

28,753

1,281 Total non-current liabilities

3,059

3,178

118

Total liabilities

48,98250,521

1,539

Share capital

2,575

2,575

－

Capital surplus

2,690

2,748

58

Retained earnings

44,25546,534

2,278

Treasury shares△ 4,454△ 5,012△ 558

45,066

46,845

1,779

1,056

1,177

120

Share acquisition rights

3849

11

Non-controlling interests

237

286

49

46,39948,3591,960

95,381

98,881

3,500

Total shareholders' equity
Total accumulated other comprehensive
incomeTotal net assets
Total assets

95,381

98,8813,500 Total liabilities and net assets

SENSHU ELECTRIC CO.,LTD.

26

Electric wire and copper price
There are two types of electric wires: copper and aluminum wires, and most of the wires we deal
with are copper wires. Therefore, the market price of copper is important for the sale of electricwires.
The domestic copper quotation is determined by JX Nippon Mining & Metals based on the international
copper quotation determined by the London Metal Exchange (LME) and the exchange rate.
〈Copper price and monthly sales (non-consolidated)〉

SENSHU ELECTRIC CO.,LTD.

27

Dividends and Dividend Payout Ratio
Plans to increase dividends
for 10 consecutive years in real terms（Unit：yen,％）(Note) The Company conducted a 2-for-1 stock split of shares of common stock on November 1, 2022,
and the dividend payout ratio is calculated on the assumption that the stock split was conducted at the beginningof the previous fiscal year.

SENSHU ELECTRIC CO.,LTD.

28

Trends in shareholder return(Dividend+treasury stock)
Implementation of continuous
shareholder returens through dividends+ treasury stock(Unit:million）

SENSHU ELECTRIC CO.,LTD.

29

Trends in Main Indicators Red = FY10/2023 forecast Blue = Results
EPS (yen)

BPS(yen)

ROE(%)

DOE(%)

Equity ratio(%)

Shareholder return rate(%)(Note) The Company conducted a 2-for-1 stock split of shares of common stock on November 1, 2022,
and calculated are based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

SENSHU ELECTRIC CO.,LTD.

30

Thank you for your attention.

Stock code : 9824

SENSHU ELECTRIC CO.,LTD.

Notes on the content
None of the information on this document constitutes a solicitation to purchase or sellshares belonging to our company.
Please note that, due to various factors, future performance may differ from theseforecasts. The information contained within this material should be checked against
information obtained through other means and utilized at the user's discretion.
In no event shall our company or its suppliers be liable for any damages resulting fromthis information. We ask that users make investment decisions at their own discretion.
Furthermore, please be aware that the information presented here may not always reflect
the latest information available.

SENSHU ELECTRIC CO.,LTD.